US stocks slide as traders deal with fresh banking woes and digest outlook for rates
US stocks fell as traders remain wary of banking sector woes and assess the Fed's next move.
Shares of Deutsche Bank dropped after the cost of its credit default swaps jumped.
Bond yields are down across the curve this morning.
US stocks tumbled on Friday as traders digested fresh concerns in the global banking sector and the Federal Reserve's outlook on interest rates.
Bank shares led the dive. Deutsche Bank sank 14% in Frankfurt on concerns about the health of the German lender. Shares of UBS and Credit Suisse also fell after Bloomberg reported that both banks are under Justice Department scrutiny.
Bond yields are down across the curve this morning. Yields on the two-year Treasury are the lowest they've been in six months as investors eye a pause in rate hikes from the US central bank later this year.
Here's where US indexes stood shortly after the open at 9:30 a.m. on Friday:
S&P 500: 3,926.73, down 0.56%
Dow Jones Industrial Average: 31,920.71, down 0.57% (184.54 points)
Nasdaq Composite: 11,721.88, down 0.56%
Here's what else is happening today:
A sharp economic downturn is headed for the US, billionaire investor Barry Sternlicht told CNBC. He described the Fed's policy approach "using a steamroller to get the price of milk down two cents, to kill a small fly."
According to Fed chair Jerome Powell's favorite bond gauge, a recession is nearly certain this year.
Steve Forbes says the Federal Reserve's persistent interest rate hikes are trashing the economy, adding that "they're pursuing policies that will make the economy worse," the editor-in-chief of Forbes Magazine told Fox Business.
Wedbush Securities said it's not seeing anything illegal with Block following the release of a scathing short-seller report from Hindenburg, which alleges that that the payment firm misled its investors.
In commodities, bonds and crypto:
West Texas Intermediate crude oil fell 2.7% to $68.10 per barrel. Brent crude, oil's international benchmark, dropped 2.5% to $74.02.
Gold rose 0.2% to $2,000 per ounce.
The yield on the 10-year Treasury tumbled 10 basis points to 3.30%.
Bitcoin fell 1% to $27,913.
Read the original article on Business Insider